Section 21(1) of the Act (Restrictions on financial promotion) prohibits an unauthorised person from communicating a financial promotion (qualifying credit promotion in the case of MCOB), in the course of business, unless an exemption applies or the qualifying credit promotion is approved by a firm.
Most of the rules in this chapter apply when a firm approves a qualifying credit promotion in the same way as when a firm communicates a qualifying credit promotion itself. A firm therefore has a similar responsibility for a qualifying credit promotion that it approves as for one that it communicates. For example, a firm which approves a non-real time qualifying credit promotion must:
A firm may also wish to approve a qualifying credit promotion that it communicates itself. This would ensure that an unauthorised person who then also communicates the qualifying credit promotion to another person will not contravene the restriction in section 21(1) of the Act (Restrictions on financial promotion).
A firm which approves a promotion that is exempt under MCOB 3.2.5 R (Application: what?; exemptions) or MCOB 3.3.1 R (Application: where?) must still comply with certain rules in this chapter (see MCOB 3.2.4 R (Application: what? exemptions) and MCOB 3.3.3 R (Exceptions to territorial scope: rules without territorial limitation)).
If an approval is limited in accordance with MCOB 3.11.3 R, and an unauthorised personcommunicates the qualifying credit promotion to persons not covered by the approval, the unauthorised person may commit an offence under section 21(1) of the Act (Restrictions on financial promotion). A firm giving a limited approval may wish to advise the unauthorised person accordingly.
the extent and level to which the compensation scheme will be available, or if the scheme will not be available, a statement to that effect; and
if the communicator wishes, the protection or compensation available under another system of regulation; and